Trading Tips No 1: Learn How to Trade The Moment of Truth

So you have learned how to trade the markets by mastering a few trading tools like Moving Averages, Channels, Stochastics, MACD, or RSI - that is a great accomplishment achieved by only a few. However, having the tools and rules to trade markets successfully, year in and year out, is only half of the challenge. The other half is far more daunting and achieved by even fewer investors - I am talking about good old-fashioned discipline. That is, discipline to follow your indicators and rules without fail - every trade entry and every trade exit. This is why it is critical that you learn how to trade. This is the 'moment of truth' in the life of every trader or investor.

Here is a test. Are you able to consistently pull the trigger on your sell signal when all the 'experts' are screaming, 'buy'? Do you ever give your stop loss a little more room because you can't stand to lose, not even one trade, only to have the market gap open the next day against you? Are you always available during the trading day to follow your trades? Do you let your emotions cloud your thinking and cause you to violate your own trading rules in the 'heat of battle'? If you answered yes to any or all of these questions, you are absolutely normal and that's the reason why it's so difficult to trade successfully even with a good methodology. If you fail to learn how to trade , you are your own worst enemy, when it comes to disciplined trading or investing.

Is there a remedy for this problem? Yes! The solution, when you are learning how to trade , is to find a good mechanical trading system that provides superior returns consistently over time and a broker to trade it, verbatim, on your behalf. You will have instantly solved the discipline problem and dramatically increase your potential for success.

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In this Wednesday, Dec. 19, 2007 file photo, Attorney General Michael Mukasey addresses the American Bar Association's Standing Committee on Law and National Security, at the University Club in Washington.  Mukasey collapsed during a speech Thursday night, Nov. 20, 2008 and was being taken to a hospital. (AP Photo/Gerald Herbert)AP - Attorney General Michael Mukasey, the no-nonsense ally in President Bush's war on terror, was hospitalized Thursday after he collapsed during a late-night speech and lost consciousness.



In a Jun 27, 2008 file photo  Sen. Barack Obama, D-Ill., takes the stage with Sen. Hillary Rodham Clinton, D-N.Y., at a campaign event in Unity, N.H.,    President-elect Barack Obama plans to nominate  Clinton as secretary of state after Thanksgiving, an aide to his transition said Thursday, Nov. 20, 2008. (AP Photo/Elise Amendola/file)AP - President-elect Barack Obama plans to nominate Hillary Rodham Clinton as secretary of state after Thanksgiving, a new milestone for the former first lady and a convergence of two political forces who fought hard for the presidency.



An employee uses her mobile phone in front of an electronic stock board at the Korea Stock Exchange Market in Seoul, South Korea, Friday, Nov. 21, 2008. The Korea Composite Stock Price Index jumped 55.04 points, or 5.8 percent, to close 1,003.73. (AP Photo/Ahn Young-joon)AP - Most Asian and European markets rebounded Friday after sharp declines in recent days as investors scooped up battered financial and technology shares.



House Speaker Nancy Pelosi of Calif., right, accompanied by Senate Majority Harry Reid of Nev. takes part in a news conference on the auto industry bailout, with fellow congressional leaders, Thursday, Nov. 20, 2008, on Capitol Hill in Washington. (AP Photo/Gerald Herbert)AP - The $25 billion rescue plan for the auto industry, desperately sought by Detroit's beleaguered Big Three, collapsed Thursday as Congress drew the line at one more bailout and Democrats said they wouldn't even consider it until the companies produced a convincing plan for rebuilding their once-mighty industry.



In this image from NASA TV, mission specialist Shane Kimbrough cleans and lubricates the end of the International Space Stations' robotic arm during a space walk, Thursday, Nov. 20, 2008. (AP Photo/NASA TV)AP - Astronauts at the international space station prepared to work on a urine-recycling contraption and re-fire the space shuttle's thrusters Friday, before enjoying a half-day off to reboost their own energy.



In this image reviewed by the U.S. Military, a Guantanamo detainee, photographed through a glass window with a U.S military guard seen reflected on it,  sleeps on a mattress on the floor of his cell, at the Camp 5 detention facility, at the U.S. Naval Base, in Guantanamo Bay, Cuba, Wednesday, Nov. 19, 2008. A federal judge on Thursday, Nov. 20 ordered the release of five Algerians held at Guantanamo Bay, Cuba, and the continued detention of a sixth in what is being called a blow to the Bush administration's policy to keep terror suspects locked up without charges. (AP Photo/Brennan Linsley)AP - A federal judge on Thursday ordered the release of five Algerians held at Guantanamo Bay, Cuba, and the continued detention of a sixth in a major blow to the Bush administration's strategy to keep terror suspects locked up without charges.



Joe Wurzelbacher, also known as AP - An agency director improperly used state computers to find personal information on "Joe the Plumber," a government watchdog said in a report released Thursday.



An Aug. 31, 2006 file photo shows Guns N' Roses front man Axl Rose posing backstage at the 2006 MTV Video Music Awards in New York. (AP Photo/Stephen Chernin, File)AP - Dr Pepper is making good on its promise of free soda now that the release of Guns N' Roses' "Chinese Democracy" is a reality.



AP - A man says his cell phone saved his life. A stray .45-caliber bullet hit R.J. Richard's chest while he was mowing the lawn — hitting so hard he thought it was a stone kicked out by his tractor. He pulled out the phone. It fell apart.

Pittsburgh Steelers receiver Santonio Holmes (10) runs after catching a pass from quarterback Ben Roethlisberger as Cincinnati Bengals cornerback Leon Hall (29) moves in to make the tackle during the second quarter of a  NFL football game  in Pittsburgh, Thursday, Nov. 20, 2008. (AP Photo/Gene J. Puskar)AP - Ben Roethlisberger and the Pittsburgh Steelers know exactly how to beat the Cincinnati Bengals — with or without Chad Ocho Cinco.



A trader takes a moment's rest on the floor of the Philippine Stock Exchange which closed down 4.15 percent in today's trading in Makati City, Manila November 21, 2008. (Romeo Ranoco/Reuters)Reuters - Signs of distress in the global economy mounted, with shares in U.S. bank Citigroup Inc plunging on fears about its future, oil prices falling and the future of U.S. automakers hanging in the balance.



President-elect Barack Obama and Senator Hillary Clinton attend a campaign rally in Orlando, Florida, October 20, 2008. (Jim Young/Reuters)Reuters - Retired Marine Gen. James Jones emerged as a leading contender for White House national security adviser as President-elect Barack Obama worked on Thursday to assemble his foreign policy team.



Leaders of the U.S. automotive industry testify at a hearing held by the House Financial Services Committee on Capitol Hill, November 19, 2008. From left are General Motors CEO Richard Wagoner, Chrysler Chairman and CEO Robert Nardelli and Ford president and CEO Alan Mulally. (Kevin Lamarque/Reuters)Reuters - Democratic congressional leaders, seeking to salvage a bailout of the Big Three automakers, demanded executives provide a business survival plan in exchange for their support of up to $25 billion in loans.



File photo shows members of a private security company on the rooftop of a house in Baghdad. US officials on Thursday told scores of firms offering security in Iraq that their personnel will lose immunity from prosecution under a new US-Iraq security pact due to take effect in January.(AFP/File/Patrick Baz)Reuters - Iraqi forces shut streets in Baghdad and placed snipers on rooftops on Friday before a protest by followers of cleric Moqtada al-Sadr against a pact allowing U.S. troops to remain for three more years.



Pedestrians walk past a Citibank branch in Singapore November 18, 2008. (Vivek Prakash/Reuters)Reuters - Citigroup Inc lost more than one-quarter of its market value on growing worries over whether it has enough capital to withstand billions of dollars of potential losses and despite new support from its largest individual investor.



The sign for the Verizon Wireless store is seen in Lakewood, Colorado September 11, 2007. (Rick Wilking/Reuters)Reuters - Verizon Wireless said on Thursday that some employees had gained unauthorized access and viewed a personal cell phone account held by President-elect Barack Obama that is now inactive.



U.S. Attorney General Michael Mukasey addresses the Commonwealth Club in San Francisco, California in this March 27, 2008 file photo. (Robert Galbraith/Files/Reuters)Reuters - U.S. Attorney General Michael Mukasey was "conscious, conversant and alert" at a local Washington hospital after collapsing while delivering a national security speech at a hotel, the U.S. Justice Department said late on Thursday.



President George W. Bush sits with Thailand's Prime Minister Surayud Chulanont (not in picture) during the Asia-Pacific Economic Cooperation (APEC) summit leaders' retreat at the Sydney Opera House September 8, 2007. (Barbara Walton/Pool/Reuters)Reuters - George W. Bush makes his last scheduled trip abroad as U.S. president on Friday, heading to an Asia-Pacific summit where he will seek support for global financial reform and hold talks on ending North Korea's nuclear program.



A United Nations peacekeeper from South Africa rides atop of an armored vehicle in the North Kivu provinicial capital city of Goma. The UN Security Council approved an extra 3,000 peacekeeping troops to help end conflict in eastern Democratic Republic of Congo, where fresh fighting erupted earlier in the day.(AFP/Roberto Schmidt)AFP - The UN Security Council approved an extra 3,000 peacekeeping troops to help end conflict in eastern Democratic Republic of Congo, where fresh fighting erupted earlier in the day.



File photo shows the Italian destroyer ITS Durand de la Penne escorting the merchant vessel Victoria, chartered by the World Food Programme to deliver humanitarian assistance to Somalia. A more aggressive military approach is the only answer to an escalation of piracy off Somalia, the world's biggest oil tanker company said Friday.(AFP/NATO/HO/Po Luigi Cotrufo)AFP - A more aggressive military approach is the only answer to an escalation of piracy off Somalia, the world's biggest oil tanker company said Friday.




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